DE Turf  looks for a plan B

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Hello everyone,

As expected, the Delaware General Assembly  killed legislation that would have  up to three percent of a  Kent County lodging tax earmarked for  the DE Turf athletic fields complex.

It  came after a firestorm erupted over the role of the sponsor of the legislation, State Sen. Trey Paradee. Paradee’s brother was on the board  of DE Turf and was listed as a developer of property near the complex. His  sister is a lawyer on the team that reviews legislation.

Critics were also upset that the tax would go to  the nonprofit private field  complex in a county without a large  parks system. It remains unclear on whether Kent County will seek a revised tax proposal. DE Turf will look for other sources of support.

DE Turf  had earlier been the recipient of an interchange on Route 1, despite the lack of existing development in the immediate  area.

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In requesting that that the General Assembly overturn the legislation,  Trey Paradee took aim at the News Journal, which was hyper-aggressive in pushing  the conflict of interest angle.

We may  never know for certain, but  the brouhaha may have contributed to a decision by House and Senate leadership to set a deadline on consideration of   legislation that does not affect the state budget.  Some House and Senate members  complained that the measure slipped through the process without adequate study.

If the DE Turf battle leads to an end to  last-minute legislation Paradee may have done Delaware  a great favor.

The larger question is the wisdom of counties and cities levying a lodging tax that now runs as high as 11 percent.

The state already levies an eight percent tax, with a portion going to convention and tourism promotion and beach replenishment. Counties and cities pocket the additional percentage

We learned this week that tourism had a great year in 2018, with 2019 expected to be equally strong.

The 11 percent tax that is now in effect in New Castle County and other jurisdictions is certain to lead to slower growth as hotels become less competitive when the tax is passed along to patrons.

The argument that other jurisdictions levy similar taxes rings hollow, since much of  Delaware lacks the year-around attractions of a Philadelphia or Washington, DC. The tax will be a drag on off-season tourism and is likely to  slow down or stop job creation in a key industry.

Enjoy your Thursday.

If this newsletter was passed along by a friend or co-worker, sign up here for your own  free subscription Doug Rainey, chief content officer.

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